BUSINESSMARKETSSTOCKS

Safaricom to Pay Out Ksh18B in First Ever Interim Dividend

Share
M-Pesa agent outlets in Nairobi. Safaricom is set to pay out an interim dividend for the first time to protect shareholders during the Covid-19 pandemic.
M-Pesa agent outlets in Nairobi. Safaricom is set to pay out an interim dividend for the first time to protect shareholders during the Covid-19 pandemic.
Share

Market-leading telco Safaricom is set to pay an interim dividend for the first time, with the company citing the need to cushion shareholders from the shocks of the Covid-19 pandemic and its strong half-year performance.

Shareholders usually receive dividend payouts in August or September.

The interim dividend of Ksh18 billion equivalent to Ksh0.45 per share will be paid on or about March 31 to shareholders on record as of March 5.

The National Treasury, which holds a 35 per cent stake in Safaricom, will receive a pay-out of Ksh6.3 billion.

Vodacom Group Limited and Vodafone Group Plc are also among the biggest beneficiaries, with their combined 40% stake guaranteeing them a Ksh7.2 billion payout.

Customers at an M-Pesa agent outlet in Nairobi
Customers at an M-Pesa agent outlet in Nairobi

25% of Safaricom stake is held by the public through the Nairobi Securities Exchange (NSE).

READ>>>>>Safaricom, Airtel, Telkom Join Forces to Launch New Portal

Explaining the decision to pay out an interim dividend, Safaricom noted in a statement: “This is in recognition of the company’s solid half-year performance and to support our shareholders during these difficult economic times occasioned by the Covid-19 pandemic.”

In the half-year ended September 2020, Safaricom saw its net profit decline six per cent to Ksh33 billion.

The drop was largely attributed to the introduction of Central Bank of Kenya (CBK) relief measures that saw fees removed on mobile money transactions of up to Ksh1,000.

The charges were reinstated on January 1, raising hopes of a stronger performance by Safaricom for the full year ended march.

The reinstatement of fees on low value transaction has driven Safaricom stock prices through the roof, with the telco reaching record highs on the bourse in January.

READ>>>>>>Heavy Trading in Safaricom Shares Fires Up NSE Turnover

Written by
MARTIN SIELE -

Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
FanisiTech Beverage Awards
BUSINESS

FanisiTech Ranked Top Beverage Sales Automation Company

FanisiTech Limited has been recognised as the First Runners-Up in the "Most...

Kakamega High Court
BUSINESS

High Court Issues Fresh Orders on Truck in Tax Evasion Case

The High Court sitting in Kakamega on 11th December reversed an order...

Flutterwave awards and recognitions
BUSINESSTECHNOLOGY

Payments Technology Firm Flutterwave Listed in ‘Brands That Matter’

Flutterwave, Africa’s leading payment technology company, has been included in Fast Company’s...

Sanlam Kenya Rights Issue
BUSINESSSMART MONEY

Sanlam Kenya Rights Issue Gets Shareholders’ Nod

Listed non-bank financial services firm Sanlam Kenya Plc is set to improve...